Appraisal costs are incurred to detect poor-quality goods or services.

Question

Quizplus · Accepted Answer

Appraisal costs are costs incurred to detect poor-quality goods or services. They include the cost of inspection, testing, and quality control procedures to ensure that products or services meet the required standards. Appraisal costs are considered a form of preventive maintenance, as they help to identify and correct defects before they can cause problems for customers.

Appraisal Costs Are Incurred to Detect Poor-Quality Goods or Services